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HomeMy WebLinkAboutOrd 6034 10/02/2012 Amending Chapter 5 Regarding Audit CommitteeORDINANCE NO. 6034 AN ORDINANCE AMENDING CHAPTERS 5 OF THE VILLAGE CODE OF THE VILLAGE OF MOUNT PROSPECT REGARDING THE AUDIT COMMITTEE Passed and approved by the President and Board of Trustees the 2 nd day of October, 2012 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 3 rd day of October, 2012. ORDINANCE NO. 6034 AN ORDINANCE AMENDING CHAPTER 5 OF THE VILLAGE CODE OF THE VILLAGE OF MOUNT PROSPECT REGARDING THE AUDIT COMMITTEE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION 1 : Article XVII, entitled "Audit Committee," of Chapter 5, Boards and Commissions, of the Village Code of the Village of Mount Prospect is deleted in its entirety and a new Article XVII, "Audit Committee," inserted, to be and read as follows: Article XVII, AUDIT COMMITTEE 5.1701. CREATION AND PURPOSE: There is hereby established an audit committee of the village of mount prospect. The purpose of the audit committee is to further enhance an auditor's independence by providing a link between the auditor and the village president and board of trustees. The committee is advisory in nature and assists management and the village president and board of trustees to ensure a fair and accurate presentation of the village's financial statements. The Committee shall also be responsible for audit selection, oversight of the annual audit and oversight of financial policies. 5.1702. MEMBERSHIP: A. There shall be 5 voting members of the audit committee. All members shall be residents of the village, except the director of finance, who shall serve as an ex- officio member. The voting members, who shall be appointed by the village president with the advice and consent of the board of trustees, shall consist of the following: 1. Two (2) members of the board of trustees; 2. One (1) member of the finance commission; and 3. Two (2) residents -at- large. B. Every two years at the first meeting of the calendar year, a chair shall be elected by the members of the committee. The chair shall serve no more than two consecutive terms as chair. C. Each member of this committee shall serve for a term of four (4) years, or until a successor is appointed and qualified. Terms may be adjusted by the village president and board of trustees to assure no more than 3 terms end in any particular year. In the event that a member of the audit committee is an elected official who fails to retain a seat on the Board of Trustees, the committee position shall be vacated and another member of the board of trustees shall be appointed to serve any remaining portion of the term. 5.1703. ORGANIZATION: A. Immediately upon its organization, the audit committee shall select from its membership a vice chair and a secretary. The persons so selected shall serve for terms of two (2) years, and may be reselected to the same position. 293609_1 B. The committee shall adopt rules for the conduct of its meetings and shall keep written minutes of all meetings and other procedures. Robert's Rules of Order shall govern the conduct of the meetings to the extent that parliamentary issues are not addressed by any rules, which may be adopted by the committee. C. All meetings of the committee shall be public and its minutes shall be available for examination in the office of the village clerk during regular business hours. 5.1704. DUTIES AND RESPONSIBILITIES: In advising and assisting the village president and board of trustees, the audit committee shall have the following duties: A. Selection of an independent auditor. Results of a competitive RFP process will be brought to the audit committee for discussion and recommendation to the village president and board of trustees. B. Oversight of the village's fraud risk assessment program. Guidelines for monitoring compliance are included in the Statement of Auditing Standards No. 99 entitled — "Consideration of Fraud in a Financial Statement Audit ". C. Oversight of the annual audit to include 1) an update on pre -audit conference, 2) a status report on progress of annual audit, and 3) the results and findings of the final audit report. D. Present annually to the village president and board of trustees and management a written report on its activities in discharging its duties and responsibilities set forth in this Section. . 5.1705. MEETINGS: A. The audit committee shall meet at least twice a year. Its meeting schedule will correspond to Village staffs work on the annual audit. Notices and the conduct of its meetings will be in accordance with the open meetings act. The chair may call for special meetings as needed. SECTION 2 : This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: Hoefert, Juracek, Korn, Matuszak, Polit, Zadel NAYS: None ABSENT: None PASSED and APPROVED this 2 nd day of October, 2012. Village Clerk Mayor 293609_1